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Make a purchase
From the Gnucash Tutorial GnuCash offers business oriented features to facilitate these needs. Accounts Receivable (A/R) are used by businesses to record sales for which they are not immediately paid. Accounts Payable (A/P) record bills that they have received, but might not pay until later. These types of accounts are used primarily when you have a lot of bills and receipts flowing in and out, and do not want to lose track of them just because you do not pay or get paid right away. Buy Some Stuff We are going to buy: *Laptop £1000 ex VAT (VAT will be charged by our vendor, Bell, at the Standard Rate of 15%, £150.00 ) *Printer £500 ex VAT ( VAT is £75) *Paper £100 ex VAT ( VAT is £15 ) The total VAT for this purchase is £240.00 Create a new vendor This is the first time that we are buying from this vendor. So we need to create a new vendor record. It is also possible to override the global program VAT settings per Vendor. Also note that if you are changing the currency from GBP to say USD or EUR then you need a corresponding top level "Accounts Payable" account in that currency Create a new bill for the purchase record Create Line Item for Laptop Enter the information for the laptop we have purchased. Note that as this laptop is going to be an asset to be kept for a number of years so I am going to create a new account for this item. See the Gnucash tutorial for more advice. Typically an additional depreciation account will be created for the annual depreciation charges. Create Line Item for Printer Enter the information for the printer we have purchased. This printer is going to be an asset to be kept for a number of years so I am going to create a new account for this item. See the Gnucash tutorial for more advice. Typically an additional depreciation account will be created for the annual depreciation charges. Create Line Item for Paper We also need paper for the printer. Note that this paper will not be an asset. It will be recorded as an straight forward office expense. Overview of the whole purchase bill Below is the completed bill. Post the Vendor Purchase Bill Post the bill so that Gnucash creates the transactions for the bill. If the "Post to Account" isn't populated check that the vendor currency is the same as the "Accounts Payable" account currency. i.e. if your vendor is USD the system is looking for a USD A/Payable account. You may need to set up a top level USD A/Payable account. If so its worth naming it with a USD suffix for future clarity.. We will create a new Account for this Vendor in the Accounts Payable account. Now that we have created the account we can finally post the bill. Summary of the transactions created by posting the bill Back to GnuCash Accounting tips Wiki